S&P: Riviera still on developing watch

Standard & Poor's said its ratings on Riviera Holdings Corp., including its B corporate credit and senior secured debt ratings, remain on CreditWatch with developing implications.

The ratings were initially placed on CreditWatch on Feb. 16, following the company's announcement that it requested its financial advisor, Jefferies Company Inc., to explore strategic alternatives to maximize shareholder value, the agency noted.

Developing implications suggest that ratings could be affected either positively or negatively, depending on whether a transaction ultimately occurs, S&P said, noting an example of a transaction that might have a positive effect would be an acquisition by a higher-rated entity.

The agency said an example of a transaction that could have a negative effect might include a decision to increase debt levels to pursue an acquisition or a recapitalization.

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